An Uber driver in Los Angeles says the company has failed to adequately consider how it will be compensated when its fares rise in the future.
In a new report published on Tuesday, the tech company argues that as its prices rise, it will have to make “a significant adjustment in its business model and operating practices”.
In a letter to the company’s investors, the driver says the increase in its fares could mean a $1bn cut in operating expenses by 2023.
He says the move could cause Uber to be “completely and irrevocably out of business”.
“If you consider what the future will bring, then you would need to make a major adjustment in your business model,” he writes.
“Your competitors are already taking notice and they will be watching what you do.”
“Uber is the king of disruption, but its business is not based on disruption at all.
It is based on a business model that has been successful in the past.
Uber’s success is a reflection of the people and companies that built it,” Uber said in a statement.
The company says it is working with regulators to understand the impact of the proposed change.
Uber is the first company to report a decline in revenue and profit since the beginning of 2017, as it grapples with a series of regulatory and legal challenges.